Coinworld News Report:
AVAX price has risen by 25% after breaking through the bull market signal within 48 hours. Indicators show a decrease in large transactions and a decline in the ratio between whales and retail investors.
Avalanche (AVAX) has been on a wild ride lately, garnering significant attention from cryptocurrency investors. Let’s analyze what’s happening and where it could be headed.
Price Momentum Heating Up
AVAX broke out of a bullish flag pattern on June 29, signaling the start of a strong upward trend. This breakthrough propelled the price to surge by 25% within just 48 hours, reaching $27.70, causing many bullish investors to scramble to catch up.
After such a rapid jump, AVAX is now taking a breather. The price has retraced to around $25, which used to be a challenging bullish resistance level.
At the time of writing, this level has been acting as support, highlighting the speed at which the cryptocurrency market can change.
Over the past 24 hours, we’ve seen a slight decline of 2.24% in the price, which currently stands at $26.24. This might prompt AVAX to test the next support at $24.49. AVAX’s performance at this price level will provide clues for its next move.
What’s Happening Behind the Scenes for AVAX?
While the price chart may look optimistic, on-chain data tells a more nuanced story. Analysis of IntoTheBlock data by AMBCrypto reveals that large transactions on AVAX have decreased by over 45%. This could indicate that whales are now less active.
Data from Hyblock Capital shows that the ratio between whales and retail investors is 35.16. Simply put, this suggests a higher participation rate from regular traders compared to major players.
Looking at liquidity heatmap data from Coinglass, we can see a buildup of sell orders at higher prices. This could make it more difficult for AVAX to rally without significant buying pressure.
What’s Next for AVAX?
AVAX is at a crossroads. The recent price surge indicates strong momentum, but it now faces some formidable resistance.
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The key support level at $24.49 is crucial for AVAX’s next move. If it breaks, we might see further price decline. However, if AVAX manages to hold above $25 and attract more buyers, it could encounter significant resistance around $29.22.
The decrease in whale activity is somewhat concerning, but the participation of more retail traders could help support the price.
